japan20000

GDP Manipulation? You Should Consider Shorting the Market

your presentation of GDP calculation is oversimplified to the point of being plain wrong. For example, if the gov. spending does not lead to increased output, then inventories get depleted and they go into GDP c calculation (why did you omit them again?) The effect of prices is also stripped away from GDP. If gov. spending is useless, it will only drive up the prices and will not increase GDP (will only cause redistribution). ET CETERA
The equation is just an easier way to calculate the gross domestic PRODUCT, instead of sending officers to count shoes, tanks, and haircuts made and done in the country